[Funding alert] boAt gets debt funding of Rs 16 Cr from InnoVen Capital
Delhi-based consumer electronics startup boAt on Friday said it had raised debt funding of Rs 16 crore from InnoVen Capital. Last week, boAt received Rs 20 crore in venture debt from Flipkart Co-founder Sachin Bansal’s BAC Acquisitions.
Sameer Mehta, Co-founder, boAt, said,
“We are delighted to secure a debt investment from InnoVen Capital, as it gives us the opportunity to raise growth capital without diluting equity. As we scale greater heights, we will continue to focus on profitability and sustainable growth while minimising our cash burn.”
Founded by Aman Gupta and Sameer Mehta in 2016, boAt is a new-age consumer tech brand, which manufactures electronic products through contract manufacturing in India and China. Its product offerings include earphones, headphones, speakers, sound bars, travel chargers, and premium rugged cables.
Commenting on the funding, Ankit Agarwal, Director, Innoven Capital, said,
“India stands at an inflexion point of an S-shaped consumption curve, where discretionary consumer spending will increase disproportionately with the increase in the national GDP. New-age consumer startups are well-poised to capitalise on this opportunity. They are already breaking the barriers of traditional distribution channels by adopting omnichannel strategies and are making deeper inroads into the market by innovating and curating products based on consumer feedback.”
The company claims that it has registered impressive growth since its inception and has clocked Rs 100 crore in gross sales in FY18, and is eyeing Rs 500 crore in the next couple of years. The brand sells over 8,000 units per day, and an average five units every minute.
In May 2018, boAt raised Rs 6 crore in its first round of funding from Fireside Ventures, an early-stage VC firm that backs consumer brands. The company has offices in Delhi and Mumbai.
Operating in India, China and Southeast Asia, InnoVen Capital in May received a new funding commitment of $200 million from its existing shareholders Temasek and United Overseas Bank Limited. It has so far supported over 200 startups, disbursing over $500 million in debt funding. This year, the venture debt and lending platform has backed startups like DocsApp, MilkBasket, XpressBees, Bounce, CureFit, Drums Food International etc.